A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one-year interest rate in the U.S. is is 2% and in the euro zone the one-year interest rate is ie - 6%. The spot exchange rate is $1.25 = 1.00 and the one-year forward exchange rate is $1.20 1.00. Show how to realize a certain profit via covered interest arbitrage Borrow S1,000,000 at 2% Trade $1,000,000 for 800,000; invest at le= 6%; translate proceeds back at forward rate of $1.20 - 1.00, gross proceeds - $1,017,600. Sprrow 800,000 at 14 - 6%; translate to dollars at the spot, invest in the U.S. at is - 2% for one year, translate 848,000 back into dollars at the forward rate of $1.20 - 1.00. Net profit 2,400. Borrow E800,000 atle-6% translate to dollars at the spot, invest in the US, at is -2% for one year, translate 850,000 back into curo at the forward rate of 5120 - 1.00. Net profit 2,000, O Both B) and C)